U.S. Bancorp Revives Bitcoin Custody Service with NYDIG Amid Shift in Regulatory Landscape

U.S. Bancorp has resumed its Bitcoin custody service with NYDIG, initially supporting select ETFs and registered funds. The service was paused due to SEC capital requirements but has been revived following the rollback of those requirements. The decision to resume the service aligns with the recent surge in institutional interest in crypto exposure.

U.S. Bancorp has resumed its Bitcoin custody service, partnering with fintech firm NYDIG to offer institutional-grade security and infrastructure for select ETFs and registered funds. The service was paused in 2022 due to SEC capital requirements but has been revived following the rollback of those requirements [1].

The decision to resume the service aligns with the recent surge in institutional interest in crypto exposure. US Bancorp, the fifth-largest commercial bank in the US, first launched its custody service in 2021 but paused it due to regulatory constraints. The regulatory environment has evolved significantly in favor of financial institutions engaging in crypto custody, with the Office of the Comptroller of the Currency issuing guidance allowing banks to offer these services [2].

US Bancorp’s renewed push into crypto custody is part of a broader industry trend of traditional banks re-entering the space under more favorable conditions. The bank plans to scale the service as demand grows and is exploring how digital assets might fit into other areas like wealth management and consumer payments [3].

The crypto custody market is projected to grow from $3.28 billion in 2025 to over $6 billion by 2030, driven by institutional adoption and the diversification of digital asset classes [4]. This growth reflects the increasing legitimacy of crypto within traditional financial infrastructure.

US Bancorp’s re-entry into the space highlights the growing institutional interest in digital assets and the potential for banks to play a central role in securing and managing these assets. The bank’s shares are up 1.44% YTD, reflecting investor confidence in its strategic move [5].

References:
[1] https://www.ainvest.com/news/bitcoin-news-today-regulatory-shift-lets-bancorp-reclaim-crypto-custody-crown-2509/
[2] https://cointelegraph.com/news/us-bancorp-bitcoin-custody-relaunch
[3] https://www.bitdegree.org/crypto/news/us-bancorp-revives-crypto-custody-after-rule-change
[4] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-custody-institutional-boost-bank-enters-ring-2509/
[5] https://cointelegraph.com/news/us-bancorp-bitcoin-custody-relaunch